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OTTAWA, March 31 (AP) — The largest telecom deal in Canadian history is set to go ahead after Rogers Communications Inc.’s $26 billion ($19 billion) acquisition of Shaw Communications Inc. was approved by Ottawa on Friday. .
The approval means the deal clears the final regulatory hurdle just over two years after it was first announced. Canada has some of the most expensive cell phone plans in the world.
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But Industry Minister François-Philippe Champagne struck a harsh tone Friday, vowing to act “like a hawk on behalf of Canadians” to ensure compliance with conditions he outlined aimed at enhancing competition and reducing phone and internet costs.
Champagne approved the transfer of Shaw-owned Freedom Mobile’s wireless license to Quebecor Inc.’s Videotron, which operates in some border regions in Quebec and Ontario. Rogers and Shaw agreed in June 2022 to sell Freedom Mobile to Videotron for C$2.85 billion ($2.1 billion), alleviating competition concerns raised by the original proposal.
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Rogers announced the Shaw deal in March 2021, and the deadline to close the deal has been pushed back several times. The three companies said Friday they expected to close the deal by April 7.
Ottawa has secured 21 legally binding commitments from Rogers and Videotron to “actually drive down prices,” Champagne said.
“Make no mistake. We will monitor their performance under these terms and conditions and make sure we enforce the terms of these contracts on behalf of Canadians,” he said.
On Friday, the minister said conditions in Ottawa “should not be taken lightly.” He said they would make sure that “a fourth national player can go toe-to-toe with the big three and really drive down the price.”
Along with Rogers, Bell Canada and Telus Corp. account for the vast majority of the Canadian telecommunications industry.
Those conditions include Rogers building a second headquarters in Calgary and adding 3,000 new jobs in western Canada “in the coming months,” which must be maintained for at least 10 years.
Videotron must offer plans at least 20 percent lower than its rivals and spend C$150 million (US$111 million) over the next two years to upgrade Freedom Mobile’s network. No Freedom Mobile license may be transferred for ten years.
If Rogers violates the conditions, it must pay up to C$1 billion ($740 million) in damages, the minister said. If Videotron fails to meet its commitments, it could be fined C$200 million ($147 million). (Associated Press)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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